The Delhi High Court has rejected Pernod Ricard’s appeal to resume sales of its popular brands, Absolut Vodka and Chivas Regal, keeping the ban in place for the third consecutive year. The ruling comes amid ongoing corporate investigations and a $314 million tax dispute, intensifying pressure on the French liquor giant. Delhi is a critical market for Pernod Ricard, representing nearly 5% of its nationwide sales.
Background of the Investigation
The controversy stems from the now-scrapped 2021 Delhi liquor policy. Authorities allege that Pernod Ricard attempted to influence the market by colluding with retailers, an allegation the company has consistently denied. Repeated license denials by the Delhi government cited the company’s status as an accused party in ongoing investigations. Pernod Ricard contended that without any conviction, its operations should not be blocked.
High Court Decision and Implications
The High Court upheld the government’s stance, noting that the company remains ineligible for a liquor license while investigations continue. This decision effectively bars Pernod Ricard from operating in Delhi, limiting revenue and brand visibility in a key market. Company filings describe the repeated denials as “severely restricting business operations and market presence.”
Tax Dispute Adds Pressure
Adding to its challenges, the company faces scrutiny for allegedly undervaluing Scotch whisky imports to minimize tariffs. Investigators claim that Pernod Ricard misrepresented the age and composition of imported malts, prompting a $314 million tax demand. Government documents assert that the company failed to declare accurate import details, impacting the assessment of duties.
Pernod Ricard’s Indian Portfolio
Established in 1975 from the merger of Pernod and Ricard, the group manages global brands including Chivas Regal, The Glenlivet, Jameson, Ballantine’s, Absolut Vodka, and Beefeater Gin. In India, it also operates Seagram’s labels like Royal Stag and Blenders Pride. With the court’s ruling, Delhi consumers will continue to be unable to legally purchase Absolut Vodka or Chivas Regal, as investigations and regulatory hurdles persist.
